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TMI Blog2013 (7) TMI 804X X X X Extracts X X X X X X X X Extracts X X X X ..... the CIT u/s 263 set aside and that of the AO is restored and the grounds raised by the assessee in this regard are allowed. X X X X Extracts X X X X X X X X Extracts X X X X ..... ;s length price cannot also be determined in this case as per section 92-C of the IT Act, 1961. However, the CIT after perusing the explanation filed by the assessee held that the same was not acceptable and verification is needed as to whether the transaction done is at arm's length price. Therefore, the CIT set aside the assessment made on 17/12/2009 and directed the AO to do the assessment afresh after referring these transactions to the TPO as per the provisions of section 92C for determining the arm's length price. 4. Aggrieved, the assessee is in appeal before us and raised the followed grounds of appeal: "1. The order of the learned CIT is erroneous both on facts and in law. 2. The learned CIT erred in holding that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion were capital investments made by the company and the transactions are not international transactions within the meaning of provisions of section 94B of the IT Act and hence, there was no requirement of filing any audit report in Form No. 3CEB. The learned counsel further contended that the CIT erred in directing the AO to refer the transactions to the TPO as per the provisions of section 92-C of the IT Act and that the investment is merely investment of capital and not a sale transaction as the investment does not give raise to any international transaction with regard to computation of income as contemplated under Chapter X. The learned counsel submitted that the order u/s 263 is to be set aside as the order of the AO is neither errone ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Circular is extracted below: "55.6 The substituted new sections 92A and 92B provide meanings of the expressions 'associated enterprise' and 'international transaction' with reference to which the income is to be computed under the new section 92. While subsection (1) of section 92A gives a general definition of associated enterprises, based on the concept of participation in management, control or capital, sub-section (2) specifies the circumstances under which the two enterprises shall be deemed to be associated enterprises. 55.7. Section 92B provides a broad definition of international transaction, which is to be read with the definition of transaction given in section 92F. An international transaction is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 'income arising' in the opening words of section 92 postulates that income has arisen under the substantive charging provisions of the Act. If by application of the provisions of section 45 read with section 48, which are integrally connected one with the other, income cannot be said to arise, section 92 does not come to the aid of the Revenue even though it is an international transaction. Section 92 obviously is not intended to bring in a new head of income or to charge tax on income which is not otherwise chargeable under the Act." 9. The learned counsel also relied upon the decision in the case of Amiantit International Holding Ltd., 322 ITR 678 (AAR) wherein it was held that in a case where income was not chargeable at ..... X X X X Extracts X X X X X X X X Extracts X X X X
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